RE: Institutions/directors11 Jun 2018 10:08
I know this from my professional background as ex-investment banker. Different ii investors have different investment rules but as a rule of thumb they will want to be able to liquidate their position in max 3 days based on max 20% of adtv. Also they typically want to see 1-3m trading value. Also a market cap of 250m is really the absolute minimum for them. Ii typically spend a lot of time on due diligence and resources for an investment and to be meaningful the position needs to be significant...
A small AIM listed penny stock with no “real” CEO, a recent downgrade of revenues, buying at the top of 52wks, EC proposal yet to be voted on etc just doesn’t go down well in cynical investment committees..
I am just giving you some colour how some long only institutions work. Ii hedge funds can make decisions much quicker of course.